The HO knows the shortsale is not a for sure thing, so he wnet out and got a lease on another place to live just in case his credit is screwed from the foreclosure. So the homeowner is planning on leaving the property probably in a few weeks. Basically, just abandoning the property.
My question is, if we’re in the middle of negotiating a shortsale with the bank, will the actions of the owner vacating/abandoning the property put the deal in jeopardy? Or do this actually help my case?
On the surface this may help your case. The bank will now have a vacant property on their hands requiring extraordinary measures and expense to protect their investment. Offer them a thoughtful deal that will take the property off their hands before this occurs.
A vacant property would be prone to vandals, squatters, homeless people, partying highschool kids, animals, mold, broken pipes due to cold (winter is nearly here), pyros/arsonists, etc. Not to mention the other costs associated with holding the property like taxes, etc. And they would likely sell through a realtor, more costs for them. I think a quick easy out would be appealing to them…but you never know. Your offer is only as good as its presentation…
Keep in mind that if the bank knows the property is vacant, they will change the locks and winterize the property. In your contract with the Seller, you should something that provides you access to the property to show contractors, inspectors, partners, etc. That way, the bank has to allow you access even if they changed the locks. If your exit strategy is to flip the property, be sure that your contract states that the property is being sold “as is”.
I require that the home be vacant. This position is endorsed by the lenders I negotiate with, they prefer that the house be vacant because they see the owner as the most likely source of damage in the home.
In most cases the bank wants to see that the tentant is still staying in the house Try to let them stay in there until you get an agreement with the bank but before that get the power of attorney and quit claim deed signed by every one who on the deed